Agency: Leo Burnett
After 5 years of healthy growth (2012 to 2016), the automotive industry in the UK was forecast to slow down, as many of the new cars that had been sold over the previous 5 years started to enter the 'used car market' and people had the option to get an 'almost new car at a great price'. A no brainer for many, due to the long term reliability of cars today1.
However, what we saw in 2017 was not a gradual slowing of the market, but a rapid decline due to Brexit and 'Dieselgate'.
Brexit caused the price of sterling to drop and inflation to rise. And this combined with stagnating wages made people worry about money and put off buying big tickets items like cars.
Then we had 'Dieselgate', the governments U turn on the environmental suitability of these vehicles, which on top of Brexit, resulted in wholesale uncertainty in the market.